There are many factors, from objective to subjective, affecting the cost of factory construction: Legal regulations change, market prices fluctuate, etc. Here are the factors that directly affect the factory construction quotation that investors should pay attention to.
The smaller the factory scale, the higher the construction unit price. Because small or large-scale factories all include fixed items with similar costs: fire protection and fighting system, infrastructure system, underground tanks, internal roads, fences,… These items are performed independently, the number of workers, the cost of supplies and materials for each item must be ensured for quality construction. It is impossible to reduce the number of workers or cut costs because of the small factory. Therefore, the smaller the factory scale, the higher the construction unit price per m2, and vice versa, the larger the factory scale, the more optimal the unit price will be.
The more complex the factory design (more details, more requirements for structures to withstand large loads, large machine systems and power-consuming lines, etc.), the more time it takes to construct. A difficult project will require a team of experienced and skilled engineers and construction workers who can offer the best and most optimal construction methods. Management costs as well as labor costs for complex designs will be higher than for conventional projects.
Specific requirements of the manufacturing industry
The manufacturing sector and industry-specific requirements are also factors that affect the cost of building a factory. Electronic factory will have very high requirements for static electricity so the construction materials are usually high-grade materials such as epoxy anti-static paint or vinyl tile. Factories in the field of food processing and pharmaceuticals have strict requirements on temperature and humidity. The construction of infrastructure, floors, drainage, ventilation, etc. of the factory must meet GMP, HACCP/ISO 22000 standards. Therefore, the construction cost of these factories will be higher than that of conventional factories.
Requirements on construction materials
60% of the factory construction cost is determined by the construction materials of the project. Same as building materials, but there are many brands suppliers to choose, many categories to consider: high-grade materials, medium-quality materials but cheap, etc. Many investors are quite careful in choosing construction materials, so the factory construction quotation depends a lot on the investor’s requirements.
Requirements on progress
Factories construction usually takes place in a short time, 3 to 6 months on average. Sometimes because of an expansion or renovation project right on the premises of the manufacturing factory, it has to be constructed without affecting production, or for some other reason, the construction time needs to be further shortening, increasing night work, urgent progress, …. This requires very high efforts from the construction contractor, both in terms of human resources, machinery and methods of organizing construction on the construction site, and at the same time push the factory construction cost higher than the normal project.
Besides, the too long construction time also gives rise to many objective risks: market price, construction resources, etc. The longer the construction period, the greater the project management costs, and may increase construction investment costs.
Therefore, a reasonable construction schedule will help investors save construction costs. The appropriate construction schedule is when the contractor calculates the overall progress of the project based on the progress of using materials and labor, moving materials and labor between work items in the project smoothly, maintaining a stable construction progress, avoiding pooling of manpower and materials at the same time.
Geological factors directly affect the construction cost of the factory foundation. Geological survey will show the depth of pile pressing to lay the foundation, that reach the soil layer that able to bear the load over time. The weaker the soil foundation is, especially the areas near the river with the thick mud layer, the deeper the pile foundation must be, the higher the cost of drilling and pressing piles, constructing the factory foundation, improving or reinforcing the foundation.
Experienced general contractors, with objective and relatively accurate assessments of the geological conditions of each region, will be a reputable factory building consultant for the investor.
Construction contractor’s ability
Each contractor will have different construction capabilities, different construction plans and methods, different internal quality management processes, leading to different construction quotes.
General contractors with experienced technical team and good project management capacity, the construction quotation may be higher than other contractors, but at the same time the quality is also commensurate with the quotation: construction works on schedule, helps the factory to stabilize production and can save operating costs, maintenance, warranties and upgrades costs later.